1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Tcecarenko [31]
3 years ago
7

On June 30 (the end of the period), Brown Company has a credit balance of $2,185 in Allowance for Doubtful Accounts. An evaluati

on of accounts receivable indicates that the proper balance should be $28,305. Journalize the appropriate adjusting entry. If an amount box does not require an entry, leave it blank.
Business
2 answers:
asambeis [7]3 years ago
8 0

Answer:

Dr Bad debt expense 26,120

    Cr Allowance for uncollectible accounts 26,120

Explanation:

The allowance for uncollectible accounts represents the estimated amount of credit sales that the company doesn't expect to collect, i.e. bad debt. This account is a contra asset account that reduces the amount of accounts receivable, that is why it has a credit balance. It is not reported in the balance sheet, since only net accounts receivable is reported.

Bad debt expense is an expense account that must have a debit balance as any other expense account.

allowance for uncollectible accounts = $2,185 + $26,120 = $28,305

Olegator [25]3 years ago
7 0

Answer: The appropriate entry is journalized as follows:

                                                         Debit ($)                                   Credit ($)

Bad debt expense                            26,120

Allowance for doubtful accounts                                                       26,120

<em>(Being entries to record additional bad expense provision)</em>

Explanation: Bad debt expense is an estimate of the amount of accounts receivable that is deemed uncollectible meanwhile allowance for doubtful accounts is a balance sheet allowance account for bad debt and is usually deducted from the accounts receivable to show the actual amount of accounts receivable that is recoverable.

The $26,120 above was arrived at as the difference between $28,305 and $2,185.

You might be interested in
Lilly's team had trouble keeping up with all the changes being made to the
zvonat [6]

C, personal productivity

4 0
3 years ago
Read 2 more answers
Journalize the following sales transactions for Antique Mall. Explanations are not required. The company estimates sales returns
dolphi86 [110]

Answer:

Antique Mall

Journal Entries:

Jan. 4 Debit Accounts Receivable $14,000

Credit Sales Revenue $14,000

credit terms are n/30.

Debit Cost of goods sold $7,000

Credit Inventory $7,000

Jan. 8 Debit Sales Returns $400

Credit Accounts Receivable $400

Debit Damaged Goods $150

Credit Cost of goods sold $150

Jan. 13 Debit Cash $13,600

Credit Accounts Receivable $13,600

Jan. 20 Debit Accounts Receivable $4,900

Credit Sales Revenue $4,900

credit terms are 1/10, n/45, FOB destination.

Debit Cost of goods sold $2,450

Credit Inventory $2,450

Jan. 20 Debit Freight-out Expense $70

Credit Cash $70

Jan. 29 Debit Cash $4,851

Debit Cash Discounts $49

Credit Accounts Receivable $4,900

Explanation:

a) Data and Analysis:

Jan. 4 Accounts Receivable $14,000 Sales Revenue $14,000

credit terms are n/30.

Cost of goods sold $7,000 Inventory $7,000

Jan. 8 Sales Returns $400 Accounts Receivable $400

Damaged Goods $150 Cost of goods sold $150

Jan. 13 Cash $13,600 Accounts Receivable $13,600

Jan. 20 Accounts Receivable $4,900 Sales Revenue $4,900

credit terms are 1/10, n/45, FOB destination.

Cost of goods sold $2,450 Inventory $2,450

Jan. 20 Freight-out Expense $70 Cash $70

Jan. 29 Cash $4,851 Cash Discounts $49 Accounts Receivable $4,900

8 0
3 years ago
Metropolitan Power and Light is a monopoly in the electrical generation and distribution industry. Since it does not face any co
____ [38]

Answer: x-inefficiency.

Explanation: Since it does not face any competition in its industry, the actions of Metropolitan Power and Light are an example of x-inefficiency which is a situation in which monopolies find themselves wherein they do not have to act efficiently since they are protected from competitive pressures. X-inefficiency is also applied to analyzing the average costs in imperfectly competitive markets whose average costs are higher than they would be if the market was more efficient.

7 0
2 years ago
Given that unit cost = $25, annual carrying charge = 10%, annual demand = 4000 units and ordering cost = $15 per order, the eoq
lutik1710 [3]
$2 per screw.<span>4000 units</span>
5 0
3 years ago
Julia is preparing the balance sheet for her company. building and land are the only two assets classified as property, plant, a
Ghella [55]
Land and equipment are considered as fixed assets. As such, Julia should enter the two in long term fixed assets column and list their current values.

Short term assets
Long term fixed assets
Gross value of building
- Total depreciation value.

Over time though, she should carry out valuation to have  a true picture of how the land has appreciated in value.

8 0
3 years ago
Other questions:
  • Explain briefly why the private market for public goods is typically characterized by underprovision. Under what situations will
    5·1 answer
  • Avril Synchronistics will pay a dividend of $ 1.40 per share this year. It is expected that this dividend will grow by 7​% each
    6·1 answer
  • What is a series of future receipts or payments discounted to their value now assuming compound interest called?
    13·1 answer
  • which of the following would be the best example of a total institution? a. a mental hospital b. a private university c. a paroc
    7·1 answer
  • Which statement best explains the law of demand?
    6·2 answers
  • College football attendance, especially student attendance, has been on the decline. In 2016, home attendance at major college f
    6·1 answer
  • The goal in networking with other business owners is to
    13·1 answer
  • For each of the following businesses. what is the likely fixed factor of production that defines the short run?a. Golf courseb. M
    5·1 answer
  • Health food corporation's bonds have 7 years remaining to maturity. the bonds have a face value of $1,000 and a yield to maturit
    6·1 answer
  • Assume that beer is an inferior good. If the price of beer​ falls, then the substitution effect results in the person buying​ __
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!